News
 Industry News  
 Company News  
 
Home > News > Industry News
Westinghouse files for US bankruptcy protection
2017-3-30

Westinghouse filed for Chapter 11 protection from creditors today to enable strategic restructuring amid "financial and construction challenges" in its US AP1000 power plant projects. For its Japanese majority owner, Toshiba Corp, the move helps stem further liabilities from guarantees it provided its USA-based unit, which were $9.8 billion as of December.

Both companies stressed that only Westinghouse's US operations would be affected by the filing.

José Emeterio Gutiérrez, Westinghouse's interim president and CEO, said: "Today, we have taken action to put Westinghouse on a path to resolve our AP1000 financial challenges while protecting our core businesses. We are focused on developing a plan of reorganisation to emerge from Chapter 11 as a stronger company while continuing to be a global nuclear technology leader."

Westinghouse - which made the filing at the US Bankruptcy Court for the Southern District of New York - said it has obtained $800 million in debtor-in-possession (DIP) financing from a third-party lender to help fund and protect its core businesses during its reorganisation.

Toshiba said it would guarantee up to $200 million of the financing for Westinghouse and that the Pittsburg-headquartered company would be "deconsolidated" from its books, starting from the FY2016 full-year business results.

Westinghouse's shares are split between Toshiba (87%), KazAtomProm (10%) and IHI Corporation (3%). KazAtomProm, Kazakhstan's state-run uranium producer, is entitled to sell its 10% equity holding in Westinghouse pursuant to put option agreements that can be exercised on or after 1 October, Toshiba said.

Westinghouse said the DIP financing will fund its core businesses of supporting operating plants, nuclear fuel and components manufacturing and engineering as well as decommissioning, decontamination, remediation and waste management as the company "works to reorganise around these strong business units". Existing letters of credit have been "cash collateralised in full and will remain in place", it said. The financing will also allow for new letters of credit to be issued.

Limited to USA

Toshiba, which bought Westinghouse in 2006, warned in December last year that it might have to write off "several billion" dollars because of Westinghouse's purchase in 2015 of US construction firm CB&I Stone & Webster (S&W). Upon closing of that transaction, Westinghouse assumed full responsibility for all AP1000 projects and the nuclear integrated services business. Since then, Toshiba and CB&I - S&W's former parent company - have been in dispute over the business's true value.

Westinghouse is constructing eight AP1000 pressurized water reactors - four in the USA (two each at Vogtle and Summer) and four in China (two each at Sanmen and Haiyang) - with S&W as its consortium partner.

Sanmen unit 1 is expected to be the first AP1000 to begin operating, in September, and the other three Chinese AP1000s are scheduled to be in operation by the end of this year. The four US units are scheduled to start operations between 2019 and 2020.

On 14 February, Toshiba said Westinghouse would be required to book a $6.1 billion write down for cost overruns at Vogtle and Summer.

The Summer units are being built for Scana Corporation's subsidiary South Carolina Electricity and Gas (SCE&G) and co-owner Santee Cooper, while the Vogtle units are for Georgia Power, a subsidiary of Southern Company. Construction of all four US AP1000s began in 2013.

Westinghouse said today it had reached an agreement with each owner of the US AP1000 projects to continue these projects during an initial assessment period. Toshiba said such arrangements would "contemplate that the owners would make payments for construction-related costs while the parties continue to explore and assess a comprehensive solution regarding the sites".

Scana and Santee Cooper said today they had been working with Westinghouse in anticipation of the bankruptcy filing to reach an agreement, subject to bankruptcy court approval, that allows for work on the project to continue toward completion of the units. This agreement, filed today with the court as part of Westinghouse's bankruptcy filings, "will provide SCE&G and Santee Cooper the time necessary to perform due diligence related to cost and schedule. It gives us critical direct access to resources and information that Westinghouse had not provided us to date, which will be important as we plan for the future of the project," Lonnie Carter, Santee Cooper president and CEO, said.

Westinghouse said it "remains committed" to its AP1000 technology and will continue its existing projects in China as well as the pursuit of other potential projects in the future.

Westinghouse's operations in its Asia and Europe, the Middle East and Africa regions are not impacted by the Chapter 11 filing, it said. Customers in those regions "will continue to receive the high-quality products and services they have come to expect in the usual course as the regions will also be supported by the DIP financing".

Toshiba has a 60% stake in NuGen, a joint venture with France's Engie, which plans to build a new nuclear power plant in Cumbria in the UK. Three AP1000s are proposed for the Moorside site.

NuGen said on 14 February that Toshiba was committed to Moorside despite announcing that day it would reduce its exposure to reactor construction projects outside Japan. Toshiba also said it would "consider participating in the Moorside project without taking on any risk from carrying out actual construction work". A NuGen representative said it was always NuGen's plan to identify an independent constructor.

UK regulators said last week they expect to complete the Generic Design Assessment of the AP1000 this month.

A NuGen spokesman said today: "NuGen will continue to work alongside our technology supplier, Westinghouse, and our shareholders, Toshiba and Engie, in taking forward the Moorside development phase.

"NuGen will continue in a 'business as usual' manner, working in collaboration to gain the appropriate permits and licences required to construct Europe's largest nuclear new build project, and will continue to increase value and attractiveness of the project to potential future investors, as we have always done."

NuGen separately announced today it no longer intends to submit a Development Consent Order application in the second quarter of this year.

The company spokesman said this was due to the high number of submissions received during the second stage of public consultation it had held on plans for the Moorside project that ended in July 2016.

"The extent of the changes to our proposals will determine to what degree the timeline for submission will change," the company said.

NuGen said its "ongoing evaluation" would take several months to complete, "followed by further dialogue to discuss any revisions".

"If there are any changes, which are outside the scope of NuGen's previous consultations, we will follow due process and engage with our stakeholders on these changes. More importantly, NuGen is taking full advantage of this opportunity to evaluate its design choices in parallel with the feedback from the second stage of its public consultation to make sure the project can be delivered in the best way for Cumbria."

The NuGen spokesman said the reference to design choices "has nothing to do with" the reactor design.

Researched and written
by World Nuclear News

  
 
2018-12-12
Indian reactor sets new world record
2018-12-12
Major concrete pour at Hinkley Point C
2018-12-12
Fuqing 6 reactor pressure vessel in place
2018-12-12
Fusion reactions project attracts UK funding
2018-12-12
ERA updates Ranger rehabilitation costs
2018-12-12
China General Nuclear ready to ramp up UK ambitions
2018-11-28
Macron clarifies French energy plans
2018-11-28
Consent granted for Hinkley nuclear island concrete
2018-11-28
Nuclear included in Poland's draft energy policy
2018-11-28
EDF to assist with Barakah operation and maintenance
2018-11-28
Bruce 6 refurbishment good for January 2020 start
2018-11-26
Energoatom reaches milestone with Westinghouse fuel supply
2018-11-26
Kansai outlines plans for dismantling Ohi units
2018-11-26
Chinese centrifuges ready for commercial use
2018-11-15
Reprocessing ceases at UK's Thorp plant
2018-11-15
GNF awarded Olkiluoto fuel supply contract
2018-11-15
IAEA reviews Fukushima Daiichi clean-up work
2018-11-13
SPIC and Westinghouse agree to cooperate
2018-11-13
Poland, USA sign Joint Declaration of Energy Security
2018-11-8
Contracts signed for two more Tianwan units
2018-11-8
Russia completes hot tests at Novovoronezh II-2
2018-11-8
Sanmen 2 AP1000 enters commercial operation
2018-11-8
Saudi Arabia lays research reactor foundation stone
2018-11-8
First reactor on Russia's floating plant starts up
2018-11-1
Climate goal demands huge boost in Chinese nuclear
2018-11-1
Canadian, Romanian industry groups extend cooperation
2018-11-1
Fourth Tianwan unit connected to grid
2018-11-1
Fessenheim closure decree annulled
2018-11-1
US utility uses drones for nuclear plant inspections
2018-10-25
Taiwanese to have say on nuclear phase-out policy
2018-10-25
Second AP1000 enters commercial operation
2018-10-25
US MOX facility contract terminated
2018-10-25
Egyptian, Uzbek nuclear power plans discussed
2018-10-25
Changes to Oyster Creek emergency planning approved
2018-10-19
Belgium, China to cooperate in nuclear energy
2018-10-19
Russia completes second reactor for Ural icebreaker
2018-10-19
Shikoku outlines plans for decommissioning Ikata 2
2018-10-19
Fourth Chinese AP1000 connected to grid
2018-10-19
USA announces China export policy
2018-10-10
More milestones for Vogtle project
2018-10-10
UN report shows increased need for nuclear
2018-10-10
Russia and India sign action plan on new projects
2018-10-10
UK decommissioning research centre opens
2018-10-10
Russia loads fuel into floating power plant
2018-9-27
Injunction lifted on operation of Japanese reactor
2018-9-27
First AP1000 reactor enters commercial operation
2018-9-27
Draft law supports Chinese nuclear exports
2018-9-27
Outages extended at Belgian plants
2018-9-27
Permit moves Leningrad II-1 closer to launch
2018-9-20
US nuclear innovation legislation makes progress
2018-9-20
Korea expands cooperation with IAEA on radwaste
2018-9-20
Rooppur protocol signed on physical protection scope
2018-9-20
EDF awards Framatome I&C upgrade contract
2018-9-20
IAEA and Russia agree on transit for LEU Bank
2018-9-12
The 5th Annual International Nuclear Power Plant Operation and Maintenance Conference and Exhibition Successfully Held in Shenzhen Daya Bay Nuclear Power Base
2018-9-12
UN chief calls for more action on climate change
2018-9-12
Viewpoint: Demystifying radiation - the nemesis of nuclear energy?
2018-9-12
Help the public understand radiation, advises cancer expert
2018-9-12
Belgian government approves funding for Myrrha
2018-9-12
IAEA completes Sudan nuclear infrastructure review
2018-9-11
CNNC completes design of district heating reactor
2018-9-11
Vessel installed at second Pakistani Hualong One
2018-9-11
Ohma start-up delayed by a further two years
2018-8-29
Fuel loading under way at fourth Tianwan unit
2018-8-29
Nuclear remains static under South African plan
2018-8-29
UK government outlines implications of "no deal" Brexit
2018-8-29
Cold testing completed at new Slovak reactor
2018-8-29
Bechtel to manage Wylfa Newydd project
2018-8-25
Second Sanmen AP1000 connected to grid
2018-8-25
German agencies to collaborate on repositories
2018-8-25
Finnish firms target Chinese radwaste market
2018-8-25
Leningrad II-1 set to enter commercial operation
2018-8-25
First steam generator for Karachi 3
2018-8-17
Steady growth in nuclear generation continues
2018-8-17
FirstEnergy takes "unwelcome" step towards plant closures
2018-8-17
Upgrades for Slovakian and Korean simulators
2018-8-17
NRC clears centrifuge plant decommissioning plan
2018-8-17
Chinese AP1000 reaches full power operation
2018-8-8
Turbine equipment installed at Leningrad II-2
2018-8-8
French, British regions unite for nuclear growth
2018-8-8
Barakah 2 completes hot functional tests
2018-8-8
ANSTO to resume Tc-99m production soon
2018-8-8
CEZ to test use of Westinghouse fuel at Temelin-1
2018-8-3
Welcome to INPOM 2018 !
2018-8-3
Westinghouse emerges from Chapter 11
2018-8-3
Cold functional tests start at Novovoronezh II-2
2018-8-3
Connecticut regulators revise zero-carbon RFP
2018-8-3
Holtec takes on two more US plants for decommissioning
2018-8-3
Ural icebreaker passes construction milestone
2018-7-27
Cameco shutdown extended indefinitely
2018-7-25
IAEA nurtures nuclear education in Asia Pacific
2018-7-25
SNC-Lavalin to decommission research reactor
2018-7-25
High temperature reactors for energy neutral mineral extraction
2018-7-25
South Ukraine 3 fully loaded with Westinghouse fuel
2018-7-19
Moltex partners in New Brunswick SMR project
2018-7-19
IAEA praises Niger's progress on nuclear programme
2018-7-19
Review of Le Creusot records passes milestone
2018-7-19
Rovno unit 3 gets 20-year licence extension
2018-7-19
Ukraine discusses 'energy bridge' with European Parliament
2018-7-12
Bruce Power, Rolls-Royce deepen digital collaboration
2018-7-12
First partner announced for New Brunswick SMR project
2018-7-11
China’s Sanmen 2 cleared for fuel loading
2018-7-11
Plasma plant starts operations in Bulgaria
2018-7-11
Bangladesh issues construction licence for Rooppur unit 2
2018-7-6
Daher to apply for NRC transport package certification
2018-7-6
Urenco to enrich reprocessed uranium
2018-7-6
ATS to provide automated solutions for Bruce detube
2018-7-6
Turboatom and Toshiba team up for turbine upgrades
2018-7-6
Tokai 2 passes safety screening
2018-6-29
EDF and Veolia partner on robotics and vitrification
2018-6-29
Halden Reactor to be decommissioned
2018-6-29
Rolls-Royce and CTEC to integrate I&C expertise
2018-6-26
Approval for decommissioning of Swiss reactor
2018-6-26
Chinese AP1000s pass commissioning milestones
2018-6-22
Darlington to supply molybdenum-99
2018-6-22
Regulator details Taishan 1 commissioning schedule
2018-6-22
Genkai unit 4 supplying power again
2018-6-22
Full-scale tests to start soon at Finnish repository
2018-6-22
GE Power starts Arabelle production for Hinkley Point C
2018-6-14
Decommissioning plan for Tokai approved
2018-6-14
Cooperation strengthens mining radiation protection
2018-6-14
Ontario Power Generation starts rebuilding Darlington 2
2018-6-14
Steam generators in place at Hongyanhe 5
2018-6-14
USA launches Summit supercomputer
2018-6-8
First criticality achieved at Chinese EPR
2018-6-8
SNC-Lavalin signs agreement on Bellefonte completion
2018-6-8
WIPP returns to routine operations
2018-6-8
ERA publishes closure plan for Ranger
2018-6-8
EDF agrees to nuclear energy cooperation with Brazil
2018-6-1
US energy regulators back Illinois legislation
2018-6-1
Toshiba scraps project to build ABWRs in Texas
2018-6-1
Kansai cuts power rates as reactors restart
2018-6-1
Olkiluoto EPR prepares for fuel loading
2018-6-1
France, Russia extend nuclear power cooperation
2018-5-25
Alliance launched to highlight nuclear on world stage
2018-5-25
New Jersey clean energy laws signed
2018-5-25
Belarus, Kazakhstan to cooperate in nuclear power
2018-5-25
Dome installed at first Fangchenggang Hualong One
2018-5-25
GNF to fuel Entergy BWRs with advanced fuel
2018-5-18
Belgium and China award simulator contracts
2018-5-18
Progress for WIPP infrastructure upgrade
2018-5-18
Perry scraps completion of US MOX facility
2018-5-18
Rosatom expands overseas links with new agreements
2018-5-18
NWMO broadens its international cooperation
2018-5-11
FirstEnergy responds to PJM grid reliability findings
2018-5-11
Nuclear for US grid resilience and climate
2018-5-10
Dome installed on Tianwan 6 containment building
2018-5-10
Other signatories express support for JCPOA
2018-5-10
TVA completes major flood protection
2018-5-8
Robots get smarter to help with decommissioning
2018-5-4
Fuel supply contracts signed for Swedish reactors
2018-5-4
New cracks delay restart of Hunterston B reactor
2018-5-4
Training milestones for new plant operators
2018-5-4
First Energy responds to PJM grid reliability findings
2018-5-4
NASA successfully tests Kilopower reactor
2018-4-27
Philippines to draw up nuclear energy policy
2018-4-27
IAEA reviews safety at South Ukraine unit 3
2018-4-27
Fuel loading under way at Chinese AP1000
2018-4-27
Macron: Europe must prioritise emission reductions
2018-4-27
Iran's Bushehr I changes to TVS-2M fuel
2018-4-20
6th Annual Nuclear Information Technology China Forum
2018-4-20
2nd Nuclear Power Maintenance Tool Seminar
2014-9-19
The Preparation Meeting of the First International Nuclear Plant Operation and Maintenance Conference 2014 Successfully held in Shanghai.
2014-9-19
NNBCS2014 Concluded a Great Success on August 27-29 in Shanghai!
2014-7-21
China's Xi hails 'new horizons' in ties with Argentina
2014-7-21
China nuclear contractor seeks merger with CPIC
2014-7-11
Investment program for Slovenian repository
2014-7-11
Supercomputer team wins award for core work
2014-6-17
Chinese Premier expected to sign UK nuclear deal
2014-6-17
Changjiang 2 vessel put in place
2014-6-13
Fourth Yangjiang unit gets its dome
2014-6-13
Sogin, CGN cooperate on waste management
2014-6-13
China produces first AP1000 vessel
2014-6-12
The 6th Annual Nuclear New Build China Summit
2014-6-6
Fuel loading at Fuqing 1
2014-6-6
China schedules new nuclear power reactors
2014-6-6
Fukushima ice wall under construction
2014-6-3
China Association of Plant Engineering Consultants
2014-5-27
China, Iran agree to push bilateral cooperation to new stage
2014-5-12
Mining operations begin at Husab
2014-5-9
Yangjiang 2 approaches start up
2014-5-8
Ningde 2 in commercial operation
2014-5-4
MBIR reactor supplier selected
2014-4-28
Political discord places Lungmen on hold
2014-4-28
Landmarks for Chinese reactors
2014-4-22
The 6th Annual Nuclear New Build China Summit 2014 will start up on August 27th in Shanghai, China!
2014-4-22
NITF2014 Concluded a Great Success on April 10-11 in Shanghai!
2014-4-22
Accelerating the Progress of Nuclear Power Informatization, building a safe and high-efficiency operation environment! —NITF 2014 will Start up on April 10-11, 2014 in Shanghai, China!
2014-4-22
Expanding Your Company’s Value in Nuclear IT Industry——The 2nd Annual Nuclear Information Technology China Forum 2014 is Coming Back!
About Us
Who We Are
Our Culture
Nuclear Summit
Event Center
Professional Service
Industry Information
Project Consulting
Training Course
Event Outsourcing
Join Us
Job Opportunities
Career Development
Contact Us
Tel: (+86-21) 6073 7200
Fax: (+86-21) 6176 8133
Email: info@innchinc.com
 
© 2018 INNCH INTERNATIONAL CO.,LTD. All Rights Reserved 技术支持:上海网站建设